Relax, it's just a lull, reckons Australand

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Australand Holdings' directors have warned investors that the
year ahead would be quieter given the slowdown in the residential
sector, but this will not affect dividends.

In the quarter to March 31, the group declared a
dividend/distribution of 4c per stapled security, comprising a 2.2c
fully franked dividend from Australand Holdings and a 1.8c
distribution from Australand Property Trust, tax deferred to an
estimated 28 per cent.

Speaking at the group's annual meeting yesterday, Australand
chairman Tham Kui Seng said the substantial increase in reportable
profit by the group of $145.1 million for the 12 months to December
31, 2004, was largely attributable to higher investment property
income.

The group's outlook for the total 2005 dividend/distribution was
16.5c.

Mr Tham said the anticipated reduction in the profitability of
the apartments division was offset by a substantial increase in the
operating profit of the land and housing division.

"The pre-tax contribution from residential development
operations has progressively increased from $87 million in 2001 to
$144 million in 2004," he told investors.

"It is not anticipated that the same rate of growth in
residential development profits can be sustained during the next
three to five years, taking into account that virtually all of the
capital raised in the future will be used to increase the group's
investment property portfolio.

"The commercial and industrial division, which co-developed and
jointly owns King Street Wharf with Multiplex, December 2004
half-year results reflected a return to a normal level of profit
generation in line with what has been achieved in recent years.

"Sydney and Melbourne's medium to long-term planning strategies
are likely to produce greater opportunities for the development of
mixed-use projects incorporating both traditional land and housing
and apartment projects."

He said the group already had a large mixed-use joint venture
project, known as Cova, at the northern end of the Gold Coast, and
the fully integrated Perth residential business unit had overseen
land subdivision, housing and apartment development operations for
several years.

These factors had led the board to decide to integrate the
operations of the land and housing and the apartments divisions
into one residential development division.